Masco Corporation

Broyhill Asset Management highlighted Masco Corporation in its second-quarter 2026 investor letter, reporting that the home improvement and building products manufacturer gained 37% and delivered the best result in the portfolio. Broyhill said the quarter was plumbing-led and volume-led, with the strongest volume growth since the end of the pandemic and pricing intact. Management raised its topline outlook, took out delayed-draw leverage to repurchase stock, and increased the buyback guide by $200 million, to more than $800 million against a $2 billion authorization. Masco closed at $69.41 per share on September 14, 2026, with a market capitalization of $13.69 billion and a 52-week range of $58.16 to $83.64. The Broyhill Equity Composite gained 8.8% in the second quarter, trailing the MSCI All Country World Index's 15.1% and the MSCI ACWI Value Index's 10.8%, while returning 2.3% in the first half against 11.5% for the Index.

Masco declared a quarterly dividend of $0.32 per share, in line with the previous payout. The dividend is payable on August 28 to shareholders of record as of August 24, with an ex-dividend date of August 24. The forward yield is 1.68%.

Masco Corp reported a 26% increase in second-quarter earnings per share to $1.64, driven by a 17% rise in operating profit to $482 million and an operating margin that expanded to 24.2%, despite a 3% decline in net sales. The company raised its full-year 2026 EPS guidance to a range of $4.40 to $4.60, up from the prior $4.10 to $4.30, and expects low-single-digit sales growth with an operating margin of approximately 18%. Results included a net tariff refund benefit of roughly $95 million, while Plumbing Products operating profit grew 26% to $361 million on a 27% margin, even as segment sales fell 3% in local currency. International Plumbing sales rose 4% in local currency, and Decorative Architectural operating profit held steady at $148 million. Masco returned $454 million to shareholders through dividends and share repurchases during the quarter.

Shares of Simpson, Masco, and Hayward jumped in afternoon trading after both chambers of Congress passed the 21st Century ROAD to Housing Act, the most significant federal housing-supply legislation since 1990. The bill aims to boost supply by cutting red tape, streamlining environmental reviews, modernizing manufactured-housing rules, and barring institutional owners of 350 or more single-family homes from buying additional existing homes. Simpson rose 4.1%, Masco gained 5.9%, and Hayward climbed 5.5%. The rally was also supported by KB Home's quarterly revenue beat and a drop in the 10-year Treasury yield below 4.5%, which helped push mortgage rates lower and reinforced demand for new construction.

The 11 home construction materials stocks tracked by StockStory reported a strong first quarter, with aggregate revenues beating analysts' consensus estimates by 2.8% and next-quarter revenue guidance coming in 1.6% above expectations. Masco posted revenue of $1.92 billion, up 6.5% year on year and exceeding estimates by 4.6%, while Simpson achieved revenue of $588 million, up 9.1% and beating by 6.4%. Griffon reported $421.9 million in revenue, down 1.1% but still ahead of estimates by 1.8%, though it issued full-year guidance that missed expectations. JELD-WEN recorded $722.1 million, down 6.9% and in line with estimates, and Gibraltar saw revenue surge 44.6% to $356.3 million, surpassing estimates by 1.8%.

Masco Corporation shares have risen 17.6% over the past three months, outperforming the Nasdaq Composite's 15.8% gain, but the stock's 18.8% advance over the past 52 weeks trails the Nasdaq's 33.3% return. The Livonia, Michigan-based home improvement and building products company, which has a market capitalization of $14.6 billion, saw its stock jump 10.8% on April 22 after reporting first-quarter 2026 revenue of $1.9 billion and adjusted earnings per share of $1.04, both exceeding Wall Street estimates. Masco expects full-year earnings between $4.10 and $4.30 per share. Wall Street analysts have a consensus Moderate Buy rating on the stock with a mean price target of $81.35, implying a 12% upside from current levels.